In exercise of the powers conferred by sub-section (3) of section 8 of the Rajasthan Value Added Tax Act, 2003 (Rajasthan Act No. 4 of 2003), and in supersession of this Department's notification No. F.12(63) FD / Tax / 2005-97 dated 11.10.2006, the State Government being of the opinion that it is expedient in the public interest so to do, hereby exempts from payment of tax the registered dealers dealing in used motor vehicle, to the extent and subject to the conditions mentioned hereunder, namely:

(1) that tax shall be paid @4% on the amount of difference between purchase value and sale price of the used motor vehicle;

(2) that no input tax credit shall be claimed by the dealer in respect of purchase of such goods which are used in the used motor vehicles; and

(3) that such used motor vehicle was purchased initially, from the registered dealer of the State and is registered in the State under the provisions of Motor Vehicles Act, 1988 (Central Act 59 of 1988) prior to its sale.